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Interest rates

Philippines doesn't rule out rate hikes

The Philippines central bank isn't ready to stop increasing interest rates even though inflation has started to show an encouraging moderation, a central bank official told Dow Jones Newswires in an interview published on Wednesday 12 April.

Liebscher hints at ECB rate rise

European Central Bank council member Klaus Liebscher signalled in an interview published Monday 10 April that the euro zone central bank may raise interest rates in June to curb inflation.

Perspectives on low global interest rates

This IMF Working Paper, published March 2006, looks at the dramatic decline in global real interest rates in recent years from a historical perspective and examines the various factors that may account for this trend.

RBNZ report on supplementary tools

The Reserve Bank of New Zealand and the Treasury on Thursday 6 April released a joint report on possible additional instruments to supplement the role of interest rates in managing demand pressures and inflation.

Comment: Exposed currencies cause jitters

The Central Bank of Iceland raised interest rates by 75 basis points last week. The central bank is concerned over the possibility of further declines in the Icelandic krona, which has fallen 12% against the US dollar this year.

Tumpel-Gugerell on ECB, Italy & Eastern Europe

In the speech 'The European Central Bank, Italy and the integration of Eastern Europe' given on 31 March Gertrude Tumpel-Gugerell of the ECB said the ECB's track record of containing inflation means that it does not have to hike interest rates…

As rates rise, Asia's risky markets get riskier

The appetite for riskier Asian assets is strong, according to this article published Thursday 23 March, but rising interest rates raise the chance of investors dumping some of these assets and if sentiment turns suddenly, local markets could be…

Fed raises rates again

The Federal Open Market Committee decided Tuesday 28 March to raise its target for the federal funds rate by 25 basis points to 4-3/4 percent.

Comment: More of the same from Bernanke

The Fed completed its first monetary policy meeting under the chairmanship of Ben Bernanke on Tuesday 28 March. The 25 basis point increase - taking US rates to 4.75% - was a mere formality, but Fed watchers were preparing to pore over the accompanying…

Trichet praises ECB's courage on rates

European Central Bank president Jean-Claude Trichet said the ECB's "courageous" decision to maintain a low level of interest rates in recent years has meant a more marked slowdown in eurozone growth has been prevented and helped economic recovery.

Bank of England voted 8-1 to hold rates

Bank of England policymakers voted 8-1 to leave UK interest rates unchanged at their most recent meeting. Stephen Nickell remained the only member of the Monetary Policy Committee to vote for a cut in the cost of borrowing in March, the minutes released…

Bet on the Fed pausing at 5 percent

Federal Reserve officials seem more likely to pause in raising their target for the overnight lending rate when it reaches 5 percent than to push it up to 5.5 percent, according to this article published Wednesday 15 March.

SNB hikes rates as expected

The Swiss National Bank (SNB) raised interest rates by 25 basis points on Thursday 16 March, saying that the economy is gaining further momentum and is becoming increasingly broad-based.

Excess liquidity clinches case for ECB rate rises

According to this recent article, several factors, including a lack of dissenting voices on the ECB Governing Council, have persuaded financial markets in recent days that the ECB is heading faster than previously expected toward an interest rate of 3…

Comment: Has the ECB become more credible?

A recent New York Fed staff paper finds that market perceptions of the ECB's "inflation aversion" have improved significantly over the last six years, reflecting the idea that monetary policy has been guided by a dedication to price stability.

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